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Section 1: 8-K (FORM 8-K)

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

 

 

Form 8-K

 

 

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event Reported): January 22, 2020

 

QCR Holdings, Inc.

(Exact Name of Registrant as Specified in Charter)

 

Delaware 0-22208 42-1397595
(State or Other Jurisdiction of
Incorporation)
(Commission File Number) (I.R.S. Employer Identification
Number)

 

3551 Seventh Street, Moline, Illinois 61265
(Address of Principal Executive Offices) (Zip Code)

 

(309) 736-3584
(Registrant's telephone number, including area code)

 

N/A
(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
  ¨   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
  ¨   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
  ¨   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
  ¨   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, $1.00 Par Value QCRH The Nasdaq Global Market

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

 

 

 

 

Item 2.02. Results of Operations and Financial Condition.

 

On January 22, 2020, QCR Holdings, Inc. issued a press release disclosing financial results for the quarter and year ended December 31, 2019. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

 

The information in Item 2.02 of this Current Report on Form 8-K and Exhibit 99.1 attached hereto is being “furnished” and will not, except to the extent required by applicable law or regulation, be deemed “filed” by QCR Holdings, Inc. for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor will any of such information or exhibits be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act.

 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits.

 

99.1Press Release dated January 22, 2020, containing financial information for the quarter and year ended December 31, 2019.

 

 

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  QCR Holdings, Inc.
     
Date: January 22, 2020 By:  /s/ Todd A. Gipple        
    Todd A. Gipple
    President, Chief Operating Officer and Chief Financial Officer

 

 

 

(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

 

Exhibit 99.1

 

  PRESS RELEASE  

FOR IMMEDIATE RELEASE

 

QCR Holdings, Inc. Announces Record Net Income of $15.9 Million for the Fourth Quarter and $57.4 Million for the Full Year 2019

 

Fourth Quarter 2019 Highlights

 

·Net income of $15.9 million, or $0.99 per diluted share
·Adjusted net income (non-GAAP) of $15.4 million, or $0.96 per diluted share
·NIM and NIM (TEY)(non-GAAP) at 3.36% and 3.51%, respectively
·Noninterest income of $29.8 million for the quarter and $78.8 million for the year
·Completed the sale of the operations of Rockford Bank & Trust (“RB&T”) to Heartland Financial USA, Inc.
·Excluding RB&T held for sale assets and liabilities:
oAnnualized loan and lease growth was 8.9% for the quarter and 10.9% for the year
oAnnualized deposit growth was 11.5% for the quarter and 10.3% for the year
oNonperforming assets were down $0.2 million, or 1.2% from the prior quarter

 

Moline, IL, January 22, 2020 -- QCR Holdings, Inc. (NASDAQ: QCRH) (the “Company”) today announced net income of $15.9 million and diluted earnings per share (“EPS”) of $0.99 for the fourth quarter of 2019, compared to net income of $15.1 million and diluted EPS of $0.94 for the third quarter of 2019. The fourth quarter results included a $12.3 million gain on sale and $3.3 million of disposition costs due to the sale of RB&T. Additionally there was a $3.0 million goodwill impairment charge related to the Bates Companies as a result of the decision to exit the Rockford market. The fourth quarter results also included $1.5 million of post-acquisition compensation, transition and integration costs (after-tax), compared to $0.7 million of similar costs in the third quarter of 2019.

 

Excluding these expenses and some modest cost for early debt extinguishment, the Company reported adjusted net income (non-GAAP) of $15.4 million and adjusted diluted EPS of $0.96 for the fourth quarter of 2019, compared to adjusted net income (non-GAAP) of $15.9 million and adjusted diluted EPS of $1.00 for the third quarter of 2019. For the fourth quarter of 2018, net income and diluted EPS were $13.3 million and $0.84, respectively, and adjusted net income (non-GAAP) and adjusted diluted EPS were $14.5 million and $0.91, respectively.

 

   For the Quarter Ended 
   December 31,   September 30,   December 31, 
$ in millions (except per share data)  2019   2019   2018 
Net Income  $15.9   $15.1   $13.3 
Diluted EPS  $0.99   $0.94   $0.84 
Adjusted Net Income (non-GAAP)(1)  $15.4   $15.9   $14.5 
Adjusted Diluted EPS (non-GAAP)(1)   $0.96   $1.00   $0.91 

 

    (1)  See GAAP to non-GAAP reconciliations.

 

“We are very pleased with our financial performance in 2019, highlighted by record net income and a 19% increase in adjusted earnings per share,” said Larry J. Helling, Chief Executive Officer. “Our strong results were driven by robust revenue growth, due to both record fee income and increased net interest income. Our loans and deposits both grew organically by over 10% for the year, as we continued to gain market share across our charters, capitalizing on the ongoing favorable economic environment as well as the value that our clients place on relationship-based community banking. Additionally, we successfully expanded our net interest margin over the course of the year as our initiatives in this area gained traction.”

 

“We also were pleased to complete the sale of RB&T, which enables us to redeploy capital in our other more profitable markets to help drive continued organic and acquisitive growth.”

 

Mr. Helling continued, “We finished the year building substantial momentum, delivering solid loan and lease production, successfully attracting new deposits and generating very strong fee income. Our asset quality remains excellent and our capital levels are strong. Looking to the year ahead, we remain optimistic about our ability to continue delivering exceptional financial results given our healthy loan pipeline and our high quality deposit base, which we believe will lead to improved returns and enhanced shareholder value in 2020 and beyond.”

 

 

 

 

Completion of the sale of Rockford Bank & Trust to Heartland Financial USA

 

On November 30, 2019 the Company completed the sale of substantially all of the assets and transfer of substantially all of the deposits and certain other liabilities of the Company’s wholly-owned subsidiary, RB&T to Illinois Bank & Trust (“IB&T”), a wholly-owned subsidiary of Dubuque, IA-based Heartland Financial USA, Inc. The purchase and assumption transaction was valued at approximately $59.1 million, representing a cash payment of approximately $46.9 million from IB&T, including the purchase price premium of $12.5 million, and the separate liquidation of net assets retained by QCRH of $12.2 million.  As a result, substantially all of RB&T’s assets and liabilities were classified as held for sale as of September 30, 2019, which impacts balance sheet comparisons to prior quarters.

 

Annualized Loan and Lease Growth of 8.9% for the Quarter and 10.9% for the Year

 

During the fourth quarter of 2019, the Company’s total loans and leases increased $79.9 million to a total of $3.7 billion. Continued loan and lease growth was funded by an increase in core deposits. Core deposits (excluding brokered deposits) increased $192.0 million, or 5.4% on a linked quarter basis. At quarter-end, the percentage of wholesale funds to total assets was 8.8%, which was down significantly from 11.6% in the third quarter. Additionally, at quarter-end, the percentage of gross loans and leases to total assets was 75%, which remained consistent with the third quarter when excluding assets held for sale.

 

“Our solid loan growth for the quarter was driven by strength in commercial and industrial and commercial real estate construction loans,” added Mr. Helling. “Production was driven by both our core commercial lending business, as well as our Specialty Finance Group. We also experienced another quarter of a more normalized level of payoffs, which were relatively consistent from the third quarter of 2019 and down significantly from the fourth quarter of 2018. Our loan and lease pipeline remains strong and our markets remain healthy, giving us confidence that we can achieve organic loan growth for the full year 2020 of between 8% and 10%.”

 

Net Interest Income of $39.9 million

 

Net interest income for the fourth quarter of 2019 totaled $39.9 million, compared to $40.7 million for the third quarter of 2019 and $39.6 million for the fourth quarter of 2018. The slight decrease was primarily due to a decline in average interest earning assets of $80.0 million, or 1.7% on a linked quarter basis, due to the sale of RB&T. Acquisition-related net accretion totaled $0.9 million (pre-tax) for the fourth quarter of 2019, compared to $1.3 million for the third quarter of 2019 and was $2.6 million for the fourth quarter of 2018. Adjusted net interest income (non-GAAP) was $40.8 million for the fourth quarter of 2019, compared to $41.2 million for the third quarter of 2019 and $38.7 million for the fourth quarter of 2018.

 

Net interest income totaled $155.6 million for the year ended December 31, 2019, compared to $142.4 million for the year ended December 31, 2018.

 

In the fourth quarter, reported net interest margin was 3.36% and, on a tax-equivalent yield basis (non-GAAP), net interest margin (non-GAAP) was 3.51%, with both metrics slightly decreasing by 1 basis point from the third quarter of 2019. Net interest margin, excluding acquisition-related net accretion was 3.43%, up 2 basis points from the third quarter. The increase in adjusted net interest margin during the quarter was due to a 27 basis point decline in the total cost of interest-bearing funds (due to both mix and rate), partially offset by a 24 basis point decrease in the yield on earning assets.

 

   For the Quarter Ended 
   December 31,   September 30, 
   2019   2019 
NIM   3.36%   3.37%
NIM (TEY)(non-GAAP)(1)   3.51%   3.52%
Adjusted NIM (TEY)(non-GAAP)(1)   3.43%   3.41%

 

    (1)   See GAAP to non-GAAP reconciliations.

 

“Our organic loan and lease growth during the fourth quarter was more than funded by our ongoing success in gathering core deposits,” stated Todd A. Gipple, President, Chief Operating Officer and Chief Financial Officer. “We also once again expanded our adjusted net interest margin during the quarter as we experienced meaningfully lower deposit costs due to lower short-term interest rates and lower CD rates. However, the decline in deposit costs was largely offset by lower yields on our loans as well as some excess liquidity.”

 

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Noninterest Income of $29.8 million

 

Noninterest income for the fourth quarter of 2019 totaled $29.8 million, compared to $19.9 million for the third quarter of 2019. The fourth quarter results included a $12.3 million gain on the sale of RB&T. Excluding the gain, noninterest income totaled $17.5 million in the fourth quarter. The decline from the third quarter was primarily due to a $2.4 million decrease in swap fee income and $0.4 million decrease on gains on the sale of the government guaranteed portions of loans. Wealth management revenue was $4.0 million for the quarter, as compared to $4.1 million for the third quarter of 2019. The slight decline was primarily due to the elimination of wealth management revenue due to the sale of RB&T. Noninterest income, excluding the gain on sale of RB&T, increased 14.7% when compared to the fourth quarter of 2018.

 

Noninterest income, excluding the gain on sale of RB&T, totaled $66.5 million for the year ended December 31, 2019, compared to $41.5 million for the year ended December 31, 2018, an increase of 60%.

 

“Our noninterest income was again driven by another strong quarter of swap fee income. Swap fee income and gains on the sale of government guaranteed loans totaled $29.0 million for the full year 2019, well in excess of our initial full-year target of $8 million to $12 million,” added Mr. Gipple.

 

Noninterest Expenses of $46.3 million

 

Noninterest expense for the fourth quarter of 2019 totaled $46.3 million, compared to $39.9 million and $36.4 million for the third quarter of 2019 and fourth quarter of 2018, respectively. The linked quarter increase was due to a number of factors, including $3.3 million of disposition costs and a $3.0 million goodwill impairment charge, both related to the decision to exit the Rockford market. In addition post-acquisition transition and integration costs increased by $1.0 million due to the completion of the core conversion of Springfield First Community Bank.

 

Asset Quality Remains Solid

 

Nonperforming assets (“NPAs”) totaled $13.1 million, a decrease of $0.2 million from the third quarter of 2019. The relatively stable NPAs resulted in the ratio of NPAs to total assets remaining consistent at 0.27% on December 31, 2019 compared to September 30, 2019 and down from 0.56% at December 31, 2018.

 

The Company’s provision for loan and lease losses totaled $1.0 million for the fourth quarter of 2019, down from $2.0 million in the prior quarter and $1.6 million in the fourth quarter of 2018. The linked quarter decrease in the provision for loan and lease losses was primarily due to continued strength in overall portfolio quality and $488 thousand of provision taken in the third quarter related to an RB&T nonperforming loan held for sale. As of December 31, 2019, the Company’s allowance to total loans and leases was 0.98%, which was down from 1.00% at September 30, 2019 and down from 1.07% at December 31, 2018.

 

In accordance with generally accepted accounting principles for acquisition accounting, the loans acquired through past acquisitions were recorded at market value; therefore, there was no allowance associated with the acquired loans at the acquisition date. Management continues to evaluate the allowance needed on the acquired loans factoring in the net remaining discount ($7.0 million at December 31, 2019).

 

Strong Capital Levels

 

As of December 31, 2019, the Company’s total risk-based capital ratio was 13.48%, the common equity tier 1 ratio was 10.29%, and the tangible common equity to tangible assets ratio was 9.25%. By comparison, these respective ratios were 12.22%, 9.12% and 8.20% as of September 30, 2019.

 

Continued Focus on Seven Key Initiatives

 

The Company continues to focus on the following long-term initiatives in an effort to improve profitability and drive increased shareholder value:

 

·Strong organic loan and lease growth in order to maintain loans and leases to total assets ratio in the range of 73% - 78%
·Grow core deposits to maintain reliance on wholesale funding at less than 15% of assets
·Generate gains on sale of government guaranteed loans, and fee income on interest rate swaps, as a significant and consistent component of core revenue

 

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·Grow wealth management net income by 10% annually
·Carefully manage noninterest expense growth
·Maintain asset quality metrics at better than peer levels
·Participate as an acquirer in the consolidation taking place in our industry to further boost return on average assets, improve efficiency ratio, and increase EPS

 

Conference Call Details

 

The Company will host an earnings call/webcast tomorrow, January 23, 2020, at 10:00 a.m. Central Time. Dial-in information for the call is toll free: 888-346-9286 (international 412-317-5253). Participants should request to join the QCR Holdings, Inc. call. The event will be available for replay through February 6, 2020. The replay access information is 877-344-7529 (international 412-317-0088); access code 10137973. A webcast of the teleconference can be accessed at the Company’s News and Events page at www.qcrh.com. An archived version of the webcast will be available at the same location shortly after the live event has ended.

 

About Us

 

QCR Holdings, Inc., headquartered in Moline, Illinois, is a relationship-driven, multi-bank holding company serving the Quad Cities, Cedar Rapids, Cedar Valley, Des Moines/Ankeny, and Springfield communities through its wholly owned subsidiary banks. The banks provide full-service commercial and consumer banking and trust and wealth management services. Quad City Bank & Trust Company, based in Bettendorf, Iowa, commenced operations in 1994, Cedar Rapids Bank & Trust Company, based in Cedar Rapids, Iowa, commenced operations in 2001, Community State Bank, based in Ankeny, Iowa, was acquired by the Company in 2016, and Springfield First Community Bank, based in Springfield, Missouri, was acquired by the Company in 2018. Additionally, the Company serves the Waterloo/Cedar Falls, Iowa community through Community Bank & Trust, a division of Cedar Rapids Bank & Trust Company. Quad City Bank & Trust Company engages in commercial leasing through its wholly owned subsidiary, m2 Lease Funds, LLC, based in Milwaukee, Wisconsin, and also provides correspondent banking services. The Company has 25 locations in Illinois, Iowa, Wisconsin and Missouri. As of December 31, 2019, the Company had approximately $4.9 billion in assets, $3.7 billion in loans and $3.9 billion in deposits. For additional information, please visit the Company’s website at www.qcrh.com.

 

Special Note Concerning Forward-Looking Statements. This document contains, and future oral and written statements of the Company and its management may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of the Company. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the Company’s management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “predict,” “suggest,” “appear,” “plan,” “intend,” “estimate,” ”annualize,” “may,” “will,” “would,” “could,” “should” or other similar expressions. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events.

 

A number of factors, many of which are beyond the ability of the Company to control or predict, could cause actual results to differ materially from those in its forward-looking statements. These factors include, among others, the following: (i) the strength of the local, state, national and international economies (including the impact of tariffs, a U.S. withdrawal from or significant renegotiation of trade agreements, trade wars and other changes in trade regulations); (ii) the economic impact of any future terrorist threats and attacks, and the response of the United States to any such threats and attacks; (iii) changes in state and federal laws, regulations and governmental policies concerning the Company’s general business; (iv) changes in interest rates and prepayment rates of the Company’s assets; (v) increased competition in the financial services sector and the inability to attract new customers; (vi) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (vii) unexpected results of acquisitions, which may include failure to realize the anticipated benefits of acquisitions and the possibility that transaction costs may be greater than anticipated; (viii) the loss of key executives or employees; (ix) changes in consumer spending; (x) unexpected outcomes of existing or new litigation involving the Company; and (xi) changes in accounting policies and practices. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Additional information concerning the Company and its business, including additional factors that could materially affect the Company’s financial results, is included in the Company’s filings with the Securities and Exchange Commission.

 

Contacts:

 

Todd A. Gipple

President

Chief Operating Officer

Chief Financial Officer

(309) 743-7745

[email protected]

 

Christopher J. Lindell

Executive Vice President

Corporate Communications

(319) 743-7006

[email protected]

 

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QCR Holdings, Inc.

Consolidated Financial Highlights

(Unaudited)  

 

                       Held for Sale   Held for Sale 
   As of   As of   As of 
   December 31,   September 30,   June 30,   March 31,   December 31,   December 31,   September 30, 
   2019   2019   2019   2019   2018   2019   2019 
   (dollars in thousands)         
CONDENSED BALANCE SHEET                            
Cash and due from banks  $76,254   $91,671   $87,919   $76,527   $85,523   $-   $11,031 
Federal funds sold and interest-bearing deposits   157,691    197,263    205,497    216,032    159,596    -    2,415 
Securities   611,341    555,409    643,803    655,749    662,969    -    66,009 
Net loans/leases   3,654,204    3,574,154    3,869,415    3,758,268    3,692,907    -    362,011 
Intangibles   14,969    15,529    16,089    16,918    17,450    -    - 
Goodwill   74,748    77,748    77,748    77,872    77,832    -    - 
Other assets   307,877    315,061    294,381    265,296    253,433    11,966    24,081 
Assets held for sale   11,966    465,547    -    -    -    -    - 
Total assets  $4,909,050   $5,292,382   $5,194,852   $5,066,662   $4,949,710   $11,966   $465,547 
                                    
Total deposits  $3,911,051   $3,802,241   $4,322,510   $4,194,220   $3,977,031   $-   $451,546 
Total borrowings   278,955    320,457    230,953    282,994    404,968    -    16,157 
Other liabilities   178,690    179,411    137,089    101,041    94,573    5,003    2,827 
Liabilities held for sale   5,003    470,530    -    -    -    -    - 
Total stockholders' equity   535,351    519,743    504,300    488,407    473,138    -    - 
Total liabilities and stockholders' equity  $4,909,050   $5,292,382   $5,194,852   $5,066,662   $4,949,710   $5,003   $470,530 
                                    
ANALYSIS OF LOAN PORTFOLIO                                   
Loan/lease mix:                                   
Commercial and industrial loans  $1,507,825   $1,469,978   $1,548,657   $1,479,247   $1,429,410           
Commercial real estate loans   1,736,396    1,687,922    1,837,473    1,790,845    1,766,111           
Direct financing leases   87,869    92,307    101,180    108,543    117,969           
Residential real estate loans   239,904    245,667    293,479    288,502    290,759           
Installment and other consumer loans   109,352    106,540    120,947    123,087    119,381           
Deferred loan/lease origination costs, net of fees   8,859    7,856    8,783    9,208    9,124           
Total loans/leases  $3,690,205   $3,610,270   $3,910,519   $3,799,432   $3,732,754           
Less allowance for estimated losses on loans/leases   36,001    36,116    41,104    41,164    39,847           
Net loans/leases  $3,654,204   $3,574,154   $3,869,415   $3,758,268   $3,692,907           
                                    
ANALYSIS OF SECURITIES PORTFOLIO                                   
Securities mix:                                   
U.S. government sponsored agency securities  $20,078   $21,268   $35,762   $35,843   $36,411           
Municipal securities   447,853    391,329    440,853    450,376    459,409           
Residential mortgage-backed and related securities   120,587    123,880    159,228    161,692    159,249           
Other securities   22,823    18,932    7,960    7,838    7,900           
Total securities  $611,341   $555,409   $643,803   $655,749   $662,969           
                                    
ANALYSIS OF DEPOSITS                                   
Deposit mix:                                   
Noninterest-bearing demand deposits  $777,224   $782,232   $795,951   $821,599   $791,101           
Interest-bearing demand deposits   2,444,925    2,245,557    2,505,956    2,334,474    2,204,206           
Time deposits   533,920    536,352    733,135    719,286    704,903           
Brokered deposits   154,982    238,100    287,468    318,861    276,821           
Total deposits  $3,911,051   $3,802,241   $4,322,510   $4,194,220   $3,977,031           
                                    
ANALYSIS OF BORROWINGS                                   
Borrowings mix:                                   
Term FHLB advances  $50,000   $60,000   $46,433   $66,380   $76,327           
Overnight FHLB advances (1)   109,300    135,800    59,300    59,800    190,165           
Wholesale structured repurchase agreements   -    -    -    35,000    35,000           
Customer repurchase agreements   2,193    2,421    2,181    3,056    2,084           
Federal funds purchased   11,230    16,105    17,010    12,830    26,690           
Subordinated notes   68,394    68,334    68,274    68,215    4,782           
Junior subordinated debentures   37,838    37,797    37,755    37,713    37,670           
Other borrowings   -    -    -    -    32,250           
Total borrowings  $278,955   $320,457   $230,953   $282,994   $404,968           

 

(1) At the most recent quarter-end, the weighted-average rate of these overnight borrowings was 1.73%.

 

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QCR Holdings, Inc.

Consolidated Financial Highlights

 (Unaudited)

 

   For the Quarter Ended 
   December 31,   September 30,   June 30,   March 31,   December 31, 
   2019   2019   2019   2019   2018 
   (dollars in thousands, except per share data) 
INCOME STATEMENT                    
Interest income  $52,977   $56,817   $54,181   $52,102   $52,703 
Interest expense   13,058    16,098    16,168    15,194    13,110 
Net interest income   39,919    40,719    38,013    36,908    39,593 
Provision for loan/lease losses   979    2,012    1,941    2,134    1,611 
Net interest income after provision for loan/lease losses  $38,940   $38,707   $36,072   $34,774   $37,982 
                          
Trust department fees  $2,365   $2,340   $2,361   $2,493   $2,216 
Investment advisory and management fees   1,589    1,782    1,888    1,736    1,657 
Deposit service fees   1,787    1,813    1,658    1,554    1,623 
Gain on sales of residential real estate loans   823    890    489    369    361 
Gain on sales of government guaranteed portions of loans   159    519    39    31    - 
Swap fee income   7,409    9,797    7,891    3,198    7,069 
Securities gains (losses), net   26    (3)   (52)   -    - 
Earnings on bank-owned life insurance   533    489    412    540    341 
Debit card fees   766    886    914    792    807 
Correspondent banking fees   194    189    172    216    179 
Gain on sale of assets and liabilities of subsidiary   12,286    -    -    -    - 
Other   1,868    1,204    1,293    1,064    1,026 
Total noninterest income  $29,805   $19,906   $17,065   $11,993   $15,279 
                          
Salaries and employee benefits  $24,220   $24,215   $22,749   $20,879   $19,779 
Occupancy and equipment expense   4,019    3,860    3,533    3,694    3,367 
Professional and data processing fees   3,570    4,030    3,031    2,750    3,577 
Acquisition costs   -    -    -    -    (4)
Post-acquisition compensation, transition and integration costs   1,855    884    708    134    1,427 
Disposition costs   3,325    -    -    -    - 
FDIC insurance, other insurance and regulatory fees   523    542    926    964    1,065 
Loan/lease expense   349    221    312    214    624 
Net cost of (income from) and gains/losses on operations of other real estate   232    2,078    1,182    298    2,477 
Advertising and marketing   1,670    1,056    1,037    785    1,122 
Bank service charges   516    502    508    483    469 
Losses on debt extinguishment, net   288    148    -    -    - 
Correspondent banking expense   216    209    206    204    207 
Intangibles amortization   560    560    615    532    540 
Goodwill impairment   3,000    -    -    -    - 
Other   1,951    1,640    1,753    1,498    1,760 
Total noninterest expense  $46,294   $39,945   $36,560   $32,435   $36,410 
                          
Net income before income taxes  $22,451   $18,668   $16,577   $14,332   $16,851 
Federal and state income tax expense   6,560    3,573    3,073    1,414    3,535 
Net income  $15,891   $15,095   $13,504   $12,918   $13,316 
                          
Basic EPS  $1.01   $0.96   $0.86   $0.82   $0.85 
Diluted EPS  $0.99   $0.94   $0.85   $0.81   $0.84 
                          
Weighted average common shares outstanding   15,772,703    15,739,430    15,714,588    15,693,345    15,641,401 
Weighted average common and common equivalent shares outstanding   16,033,043    15,976,742    15,938,377    15,922,940    15,898,591 

 

6

 

 

 

 

QCR Holdings, Inc.

Consolidated Financial Highlights

(Unaudited)

 

   For the Year Ended 
   December 31,   December 31, 
   2019   2018 
   (dollars in thousands, except per share data) 
INCOME STATEMENT          
Interest income  $216,076   $182,879 
Interest expense   60,517    40,484 
Net interest income   155,559    142,395 
Provision for loan/lease losses   7,066    12,658 
Net interest income after provision for loan/lease losses  $148,493   $129,737 
           
Trust department fees  $9,559   $8,707 
Investment advisory and management fees   6,995    4,726 
Deposit service fees   6,812    6,420 
Gain on sales of residential real estate loans   2,571    901 
Gain on sales of government guaranteed portions of loans   748    405 
Swap fee income   28,295    10,787 
Securities losses, net   (30)   - 
Earnings on bank-owned life insurance   1,973    1,632 
Debit card fees   3,357    3,263 
Correspondent banking fees   773    852 
Gain on sale of assets and liabilities of subsidiary   12,286    - 
Other   5,429    3,848 
Total noninterest income  $78,768   $41,541 
           
Salaries and employee benefits  $92,063   $68,994 
Occupancy and equipment expense   15,106    12,884 
Professional and data processing fees   13,381    11,452 
Acquisition costs   -    1,795 
Post-acquisition compensation, transition and integration costs   3,582    2,086 
Disposition costs   3,325    - 
FDIC insurance, other insurance and regulatory fees   2,955    3,594 
Loan/lease expense   1,097    1,544 
Net cost of and gains/losses on operations of other real estate   3,789    2,489 
Advertising and marketing   4,548    3,552 
Bank service charges   2,009    1,838 
Losses on debt extinguishment   436    - 
Correspondent banking expense   836    821 
Intangibles amortization   2,266    1,692 
Goodwill impairment   3,000    - 
Other   6,841    6,402 
Total noninterest expense  $155,234   $119,143 
           
Net income before income taxes  $72,027   $52,135 
Federal and state income tax expense   14,619    9,015 
Net income  $57,408   $43,120 
           
     Basic EPS  $3.65   $2.92 
     Diluted EPS  $3.60   $2.86 
           
Weighted average common shares outstanding   15,730,016    14,768,687 
Weighted average common and common equivalent shares outstanding   15,967,775    15,064,730 

 

7

 

 

QCR Holdings, Inc.

Consolidated Financial Highlights

(Unaudited)

  

   As of and for the Quarter Ended   For the Year Ended 
   December 31,   September 30,   June 30,   March 31,   December 31,   December 31,   December 31, 
   2019   2019   2019   2019   2018   2019   2018 
   (dollars in thousands, except per share data) 
COMMON SHARE DATA                                   
Common shares outstanding   15,828,098    15,790,462    15,772,939    15,755,442    15,718,208           
Book value per common share (1)  $33.82   $32.91   $31.97   $31.00   $30.10           
Tangible book value per common share (2)  $28.15   $27.01   $26.02   $24.98   $24.04           
Closing stock price  $43.86   $37.98   $34.87   $33.92   $32.09           
Market capitalization  $694,220   $599,722   $550,002   $534,425   $504,397           
Market price / book value   129.69%   115.40%   109.06%   109.42%   106.61%          
Market price / tangible book value   155.76%   140.61%   134.00%   135.77%   133.49%          
Earnings per common share (basic) LTM (3)  $3.65   $3.49   $3.10   $2.99   $2.92           
Price earnings ratio LTM (3)    12.02 x    10.88x    11.25x    11.34x    10.98x          
TCE / TA (4)   9.25%   8.20%   8.05%   7.92%   7.78%          
                                    
CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY                                   
Beginning balance  $519,743   $504,300   $488,407   $473,138   $457,387           
Net income   15,891    15,095    13,504    12,918    13,316           
Other comprehensive income (loss), net of tax   (684)   543    2,243    2,343    1,943           
Common stock cash dividends declared   (947)   (944)   (942)   (942)   (939)          
Proceeds from issuance of 9,400 shares of common stock as a result of the performance based targets met for Bates Companies   400    -    -    -    -           
Proceeds from issuance of 23,501 shares of common stock, net of costs, as a result of the acquisition of Bates Companies   -    -    -    -    1,000           
Other (5)   948    749    1,088    950    431           
Ending balance  $535,351   $519,743   $504,300   $488,407   $473,138           
                                    
REGULATORY CAPITAL RATIOS (6):                                   
Total risk-based capital ratio   13.48%   12.22%   12.04%   12.26%   10.69%          
Tier 1 risk-based capital ratio   11.17%   9.94%   9.76%   9.87%   9.77%          
Tier 1 leverage capital ratio   9.53%   9.02%   8.96%   8.90%   8.87%          
Common equity tier 1 ratio   10.29%   9.12%   8.93%   9.02%   8.89%          
                                    
                                    
KEY PERFORMANCE RATIOS AND OTHER METRICS                                   
Return on average assets (annualized)   1.23%   1.16%   1.06%   1.04%   1.10%   1.12%   0.98%
Return on average total equity (annualized)   11.93%   11.70%   10.84%   10.71%   11.42%   11.31%   10.62%
Net interest margin   3.36%   3.37%   3.25%   3.25%   3.48%   3.31%   3.46%
Net interest margin (TEY) (Non-GAAP)(7)   3.51%   3.52%   3.40%   3.40%   3.63%   3.45%   3.62%
Efficiency ratio (Non-GAAP) (8)   66.40%   65.89%   66.38%   66.33%   66.35%   66.25%   64.77%
Gross loans and leases / total assets (10)   75.36%   74.80%   75.28%   74.99%   75.41%   75.36%   75.41%
Gross loans and leases / total deposits (10)   94.35%   94.95%   90.47%   90.59%   93.86%   94.35%   93.86%
Effective tax rate   29.22%   19.14%   18.54%   9.87%   20.98%   20.30%   17.29%
Full-time equivalent employees (9)   697    766    773    771    755    697    755 
                                    
AVERAGE BALANCES                                   
Assets  $5,147,754   $5,217,763   $5,077,900   $4,968,502   $4,842,232   $5,102,980   $4,392,121 
Loans/leases   3,868,435    3,962,464    3,839,674    3,759,615    3,699,885    3,857,547    3,352,357 
Deposits   3,362,180    4,302,995    4,271,391    4,110,868    3,986,236    3,261,462    3,602,221 
Total stockholders' equity   532,756    516,195    498,263    482,423    466,271    507,409    405,973 

 

(1) Includes accumulated other comprehensive income (loss).

(2) Includes accumulated other comprehensive income (loss) and excludes intangible assets.

(3) LTM : Last twelve months.

(4) TCE / TCA : tangible common equity / total tangible assets.  See GAAP to non-GAAP reconciliations.

(5) Includes mostly common stock issued for options exercised and the employee stock purchase plan, as well as stock-based compensation.

(6) Ratios for the current quarter are subject to change upon final calculation for regulatory filings due after earnings release.

(7) TEY : Tax equivalent yield.  See GAAP to Non-GAAP reconciliations.

(8) See GAAP to Non-GAAP reconciliations. 

(9) Decrease due to sale of subsidiary Rockford Bank & Trust.

(10) Excludes assets held for sale as of September 30, 2019 and Deccember 31, 2019.      

 

8

 

 

QCR Holdings, Inc.

Consolidated Financial Highlights

(Unaudited)

ANALYSIS OF NET INTEREST INCOME AND MARGIN (4)  

 

   For the Quarter Ended 
   December 31, 2019   September 30, 2019   December 31, 2018 
   Average
Balance
   Interest
Earned or
Paid
   Average
Yield or Cost
   Average
Balance
   Interest
Earned or Paid
   Average
Yield or Cost
   Average
Balance
   Interest
Earned or
Paid
   Average
Yield or Cost
 
   (dollars in thousands) 
Fed funds sold  $2,933   $12    1.62%  $7,234   $42    2.30%  $20,426   $115    2.23%
Interest-bearing deposits at financial institutions   208,040    868    1.66%   172,386    951    2.19%   98,875    517    2.07%
Securities (1)   610,676    5,913    3.84%   626,471    6,080    3.85%   671,613    6,231    3.68%
Restricted investment securities   21,226    283    5.29%   22,719    293    5.12%   22,478    318    5.61%
Loans (1)   3,868,435    47,684    4.89%   3,962,464    51,214    5.13%   3,699,885    47,273    5.07%
Total earning assets (1)  $4,711,310   $54,760    4.61%  $4,791,274   $58,580    4.85%  $4,513,277   $54,454    4.79%
                                              
Interest-bearing deposits  $2,520,696   $6,547    1.03%  $2,505,383   $7,907    1.25%  $2,211,148   $6,110    1.10%
Time deposits   865,392    4,631    2.12%   975,736    5,486    2.23%   956,754    4,433    1.84%
Short-term borrowings   19,491    87    1.77%   17,333    98    2.24%   20,129    107    2.11%
Federal Home Loan Bank advances   87,527    210    0.95%   123,107    1,023    3.30%   190,232    1,131    2.36%
Other borrowings   -    -    0.00%   -    -    0.00%   72,264    804    4.41%
Subordinated debentures   68,356    1,004    5.83%   68,299    1,003    5.83%   -    -    0.00%
Junior subordinated debentures   37,813    579    6.07%   37,774    581    6.10%   37,644    525    5.53%
Total interest-bearing liabilities  $3,599,275   $13,058    1.44%  $3,727,632   $16,098    1.71%  $3,488,171   $13,110    1.49%
                                              
Net interest income / spread (1)       $41,702    3.17%       $42,482    3.14%       $41,344    3.30%
Net interest margin (2)             3.36%             3.37%             3.48%
Net interest margin (TEY) (Non-GAAP) (1) (2) (3)             3.51%             3.52%             3.63%
Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)             3.43%             3.41%             3.40%

 

   For the Year Ended 
   December 31, 2019   December 31, 2018 
   Average
Balance
   Interest
Earned or
Paid
   Average
Yield or Cost
   Average
Balance
   Interest
Earned or Paid
   Average
Yield or Cost
 
   (dollars in thousands) 
Fed funds sold  $8,898   $204    2.29%  $20,472   $338    1.65%
Interest-bearing deposits at financial institutions   179,635    3,910    2.18%   66,275    1,267    1.91%
Securities (1)   635,650    24,150    3.80%   659,017    23,621    3.58%
Restricted investment securities   21,559    1,174    5.45%   22,023    1,093    4.96%
Loans (1)   3,857,547    193,365    5.01%   3,352,357    163,197    4.87%
Total earning assets (1)  $4,703,289   $222,803    4.74%  $4,120,144   $189,516    4.60%
                               
Interest-bearing deposits  $2,443,989   $29,898    1.22%  $2,043,314   $18,651    0.91%
Time deposits   966,745    20,977    2.17%   766,020    12,024    1.57%
Short-term borrowings   16,837    363    2.16%   19,458    293    1.51%
Federal Home Loan Bank advances   108,536    2,895    2.67%   202,715    4,768    2.35%
Other borrowings   13,563    512    3.77%   69,623    2,749    3.95%
Subordinated debentures   60,883    3,564    5.85%   -    -    0.00%
Junior subordinated debentures   37,751    2,308    6.11%   37,578    1,999    5.32%
Total interest-bearing liabilities  $3,648,304   $60,517    1.66%  $3,138,708   $40,484    1.29%
                               
Net interest income / spread (1)       $162,286    3.08%       $149,032    3.31%
Net interest margin (2)             3.31%             3.46%
Net interest margin (TEY) (Non-GAAP) (1) (2) (3)             3.45%             3.62%
Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)             3.36%             3.48%

 

(1) Includes nontaxable securities and loans.  Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% tax rate.
(2) See "Select Financial Data - Subsidiaries" for a breakdown of amortization/accretion included in net interest margin for each period presented.
(3) TEY : Tax equivalent yield.  See GAAP to Non-GAAP reconciliations.
(4) Interest earning assets and interest bearing liabilities classified as held for sale as of September 30, 2019 are included in the calculations above.

 

9

 

 

QCR Holdings, Inc.

Consolidated Financial Highlights

(Unaudited)

 

   As of 
   December 31,
2019
   September 30,
2019
   June 30,
2019
   March 31,
2019
   December 31,
2018
 
   (dollars in thousands, except per share data) 
ROLLFORWARD OF ALLOWANCE FOR LOAN/LEASE LOSSES                         
Beginning balance  $36,116   $41,104   $41,164   $39,847   $43,077 
Reclassification of allowance related to held for sale loans   -    (6,122)   -    -    - 
Provision charged to expense (2)   979    1,584    1,941    2,134    1,611 
Loans/leases charged off   (1,182)   (741)   (2,152)   (1,059)   (4,967)
Recoveries on loans/leases previously charged off   88    291    151    242    126 
Ending balance  $36,001   $36,116   $41,104   $41,164   $39,847 
                          
NONPERFORMING ASSETS                         
Nonaccrual loans/leases  $7,902   $8,231   $13,148   $13,406   $14,260 
Accruing loans/leases past due 90 days or more   33    -    58    61    632 
Troubled debt restructures - accruing   979    763    1,313    3,794    3,659 
Total nonperforming loans/leases   8,914    8,994    14,519    17,261    18,551 
Other real estate owned   4,129    4,248    8,637    9,110    9,378 
Other repossessed assets   41    -    -    -    8 
Total nonperforming assets  $13,084   $13,242   $23,156   $26,371   $27,937 
                          
ASSET QUALITY RATIOS                         
Nonperforming assets / total assets (3)   0.27%   0.27%   0.45%   0.52%   0.56%
Allowance / total loans/leases (1)   0.98%   1.00%   1.05%   1.08%   1.07%
Allowance / nonperforming loans/leases (1)   403.87%   401.56%   283.10%   238.48%   214.79%
Net charge-offs as a % of average loans/leases   0.03%   0.01%   0.05%   0.02%   0.13%

 

(1) Upon acquisition and per GAAP, acquired loans are recorded at market value which eliminates the allowance and impacts these ratios.
(2) Excludes provision related to loans included in assets held for sale of $428 thousand for the quarter ending September 30, 2019.
(3) Excludes assets held for sale as of September 30, 2019.  

 

10

 

 

QCR Holdings, Inc.

Consolidated Financial Highlights

(Unaudited)

 

   For the Quarter Ended   For the Year Ended 
   December 31,   September 30,   December 31,   December 31,   December 31, 
SELECT FINANCIAL DATA - SUBSIDIARIES  2019   2019   2018   2019   2018 
   (dollars in thousands) 
TOTAL ASSETS                         
                          
Quad City Bank and Trust (1)  $1,682,477   $1,642,950   $1,623,369           
m2 Lease Funds, LLC   239,794    232,432    231,662           
Cedar Rapids Bank and Trust   1,572,324    1,592,896    1,379,222           
Community State Bank - Ankeny   853,834    801,596    785,364           
Springfield First Community Bank   748,753    693,897    632,849           
                          
TOTAL DEPOSITS                         
                          
Quad City Bank and Trust (1)  $1,458,587   $1,371,721   $1,308,085           
Cedar Rapids Bank and Trust   1,248,598    1,271,828    1,167,552           
Community State Bank - Ankeny   735,089    695,980    627,127           
Springfield First Community Bank   531,498    484,225    449,983           
                          
TOTAL LOANS & LEASES                         
                          
Quad City Bank and Trust (1)  $1,329,667   $1,290,195   $1,233,117           
m2 Lease Funds, LLC   236,735    230,061    228,646           
Cedar Rapids Bank and Trust   1,174,963    1,148,952    1,037,469           
Community State Bank - Ankeny   639,270    594,227    582,453           
Springfield First Community Bank   546,306    526,466    475,801           
                          
TOTAL LOANS & LEASES / TOTAL DEPOSITS                         
                          
Quad City Bank and Trust (1)   91%   94%   94%          
Cedar Rapids Bank and Trust   94%   90%   89%          
Community State Bank - Ankeny   87%   85%   93%          
Springfield First Community Bank   103%   109%   106%          
                          
                          
TOTAL LOANS & LEASES / TOTAL ASSETS                         
                          
Quad City Bank and Trust (1)   79%   79%   76%          
Cedar Rapids Bank and Trust   75%   72%   75%          
Community State Bank - Ankeny   75%   74%   74%          
Springfield First Community Bank   73%   76%   75%          
                          
ALLOWANCE AS A PERCENTAGE OF LOANS/LEASES                         
                          
Quad City Bank and Trust (1)   1.03%   1.07%   1.09%          
m2 Lease Funds, LLC   1.51%   1.39%   1.49%          
Cedar Rapids Bank and Trust (2)   1.14%   1.17%   1.19%          
Community State Bank - Ankeny (2)   1.04%   1.13%   1.05%          
Springfield First Community Bank (2)   0.41%   0.42%   0.21%          
                          
RETURN ON AVERAGE ASSETS                         
                          
Quad City Bank and Trust (1)   1.44%   1.33%   1.22%   1.30%   1.31%
Cedar Rapids Bank and Trust   1.82%   2.04%   1.78%   1.84%   1.54%
Community State Bank - Ankeny   1.38%   1.71%   0.94%   1.34%   1.18%
Springfield First Community Bank   1.44%   1.32%   1.74%   1.32%   1.64%
                          
NET INTEREST MARGIN PERCENTAGE (3)                         
                          
Quad City Bank and Trust (1)   3.55%   3.49%   3.20%   3.39%   3.38%
Cedar Rapids Bank and Trust (5)   3.49%   3.41%   3.60%   3.43%   3.59%
Community State Bank - Ankeny (4)   4.35%   4.83%   4.73%   4.33%   4.48%
Springfield First Community Bank (6)   3.95%   3.64%   4.68%   3.93%   4.55%
                          
ACQUISITION-RELATED AMORTIZATION/ACCRETION INCLUDED IN NET INTEREST MARGIN, NET                         
                          
Cedar Rapids Bank and Trust  $103   $229   $740   $547   $1,350 
Community State Bank - Ankeny   94    649    415    877    1,746 
Springfield First Community Bank   775    432    1,498    3,088    2,614 
QCR Holdings, Inc. (7)   (41)   (42)   (44)   (168)   (183)

 

(1) Quad City Bank and Trust figures include m2 Lease Funds, LLC, as this entity is wholly-owned and consolidated with the Bank.  m2 Lease Funds, LLC is also presented separately for certain (applicable) measurements.
(2) Upon acquisition and per GAAP, acquired loans are recorded at market value, which eliminates the allowance and impacts this ratio.  
(3) Includes nontaxable securities and loans.  Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% tax rate.
(4) Community State Bank's net interest margin percentage includes various purchase accounting adjustments.  Excluding those adjustments, net interest margin would have been 4.27% for the quarter ended December 31, 2019, 4.46% for the quarter ended September 30, 2019 and 4.00% for the quarter ended December 31, 2018. 
(5) Cedar Rapids Bank and Trust's net interest margin percentage includes various purchase accounting adjustments.  Excluding those adjustments, net  interest margin would have been 3.46% for the quarter ended December 31, 2019, 3.34% for the quarter ended September 30, 2019 and 3.36% for the quarter ended December 31, 2018.
(6) Springfield First Community Bank's net interest margin percentage includes various purchase accounting adjustments.  Excluding those adjustments, net  interest margin would have been 3.47% for the quarter ended December 31, 2019, 3.16% for the quarter ended September 30, 2019 and 3.52% for the quarter ended December 31, 2018.
(7) Relates to the trust preferred securities acquired as part of the Guaranty Bank acquisition in 2017 and the Community National Bank acquisition in 2013.

 

11

 

 

QCR Holdings, Inc.

Consolidated Financial Highlights

(Unaudited)

 

   As of         
   December 31,   September 30,   June 30,   March 31,   December 31,         
GAAP TO NON-GAAP RECONCILIATIONS  2019   2019   2019   2019   2018         
   (dollars in thousands, except per share data)         
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO (1)                                   
                                    
Stockholders' equity (GAAP)  $535,351   $519,743   $504,300   $488,407   $473,138           
Less: Intangible assets   89,717    93,277    93,837    94,790    95,282           
Tangible common equity (non-GAAP)  $445,634   $426,466   $410,463   $393,617   $377,856           
                                    
Total assets (GAAP)  $4,909,050   $5,292,382   $5,194,852   $5,066,662   $4,949,710           
Less: Intangible assets   89,717    93,277    93,837    94,790    95,282           
Tangible assets (non-GAAP)  $4,819,333   $5,199,105   $5,101,015   $4,971,872   $4,854,428           
                                    
Tangible common equity to tangible assets ratio (non-GAAP)   9.25%   8.20%   8.05%   7.92%   7.78%          

 

    For the Quarter Ended    For the Year Ended 
    December 31,    September 30,    June 30,    March 31,    December 31,    December 31,    December 31, 
ADJUSTED NET INCOME (2)   2019    2019    2019    2019    2018    2019    2018 
Net income (GAAP)  $15,891   $15,095   $13,504   $12,918   $13,316   $57,408   $43,120 
                                    
Less nonrecurring items (post-tax) (3):                                   
Income:                                   
Securities gains(losses), net   21   $(2)  $(41)  $-   $-   $(22)  $- 
Gain on sale of assets and liabilities of subsidiary   8,539    -    -    -    -    8,539    - 
Total nonrecurring income (non-GAAP)  $8,559   $(2)  $(41)  $-   $-   $8,516   $- 
                                    
Expense:                                   
Losses on debt extinguishment, net  $228   $117   $-   $-   $-   $345   $- 
Goodwill impairment   3,000    -    -    -    -    3,000    - 
Disposition costs   2,627    -    -    -    -    2,627   $- 
Acquisition costs (4)   -    -    -    -    29    -    1,645 
Tax expense on expected liquidation of RB&T BOLI   790    -    -    -    -    790    - 
Post-acquisition compensation, transition and integration costs   1,465    698    559    106    1,127    2,828    1,647 
Total nonrecurring expense (non-GAAP)  $8,110   $815   $559   $106   $1,156   $9,590   $3,292 
                                    
Adjusted net income  (non-GAAP) (2)  $15,441   $15,912   $14,104   $13,024   $14,472   $58,481   $46,412 
                                    
ADJUSTED EARNINGS PER COMMON SHARE (2)                                   
                                    
Adjusted net income (non-GAAP) (from above)  $15,441   $15,912   $14,104   $13,024   $14,472   $58,481   $46,412 
                                    
Weighted average common shares outstanding   15,772,703    15,739,430    15,714,588    15,693,345    15,641,401    15,730,016    14,768,687 
Weighted average common and common equivalent shares outstanding   16,033,043    15,976,742    15,938,377    15,922,940    15,898,591    15,967,775    15,064,730 
                                    
Adjusted earnings per common share (non-GAAP):                                   
Basic  $0.98   $1.01   $0.90   $0.83   $0.93   $3.72   $3.14 
Diluted  $0.96   $1.00   $0.88   $0.82   $0.91   $3.66   $3.08 
                                    
ADJUSTED RETURN ON AVERAGE ASSETS (2)                                   
                                    
Adjusted net income (non-GAAP) (from above)  $15,441   $15,912   $14,104   $13,024   $14,472   $58,481   $46,412 
                                    
Average Assets  $5,147,754   $5,217,763   $5,077,900   $4,968,502   $4,842,232   $5,102,980   $4,392,121 
                                    
Adjusted return on average assets (annualized) (non-GAAP)   1.20%   1.22%   1.11%   1.05%   1.20%   1.15%   1.06%
                                    
NET INTEREST MARGIN (TEY) (6)                                   
                                    
Net interest income (GAAP)  $39,919   $40,719   $38,013   $36,908   $39,593   $155,559   $142,395 
                                    
Plus: Tax equivalent adjustment (5)   1,783    1,763    1,808    1,794    1,751    6,727    6,637 
                                    
Net interest income - tax equivalent (Non-GAAP)  $41,702   $42,482   $39,821   $38,702   $41,344   $162,286   $149,032 
                                    
Less:  Acquisition accounting net accretion   931    1,268    1,076    1,069    2,609    4,344    5,527 
                                    
Adjusted net interest income  $40,771   $41,214   $38,745   $37,633   $38,735   $157,942   $143,505 
                                    
Average earning assets  $4,711,310   $4,791,274   $4,698,021   $4,612,553   $4,513,277   $4,703,289   $4,120,144 
                                    
Net interest margin (GAAP)   3.36%   3.37%   3.25%   3.25%   3.48%   3.31%   3.46%
Net interest margin (TEY) (Non-GAAP)   3.51%   3.52%   3.40%   3.40%   3.63%   3.45%   3.62%
Adjusted net interest margin (TEY) (Non-GAAP)   3.43%   3.41%   3.31%   3.31%   3.40%   3.36%   3.48%
                                    
EFFICIENCY RATIO (7)                                   
                                    
Noninterest expense (GAAP)  $46,294   $39,945   $36,560   $32,435   $36,410   $155,234   $119,143